In my concerns, the conservative form is strongly encouraged to capture the shock structure exactly. If your initial conditions have discontinuities, we'd rather use the conservative form of N.S equations. That's very general and extensively mentioned comments in the community of the cfd research.

"Using a non-conservation form (expanding the compact form) for easy representation in a FV method leads to incorrect computation of the fluxes leading to large errors!"

That's not actually true - it depends upon the problem that you are solving and the norm you calculate your error in. There's an example of this in Anderson's book where it is shown that the nonconservative form can be more accurate (pointwise) than the conservative form.